中外比较会计ch10.ppt

Chapter 10Long-term Liabilities Types of Long-term Liabilities Bonds payable Maturing Obligations intended to be refinanced Installment notes payable Other Long-term liabilities (1)Lease payment obligations (2) Pensions and other postretirement benefits (3)Deferred income taxes Why issue bonds but not stocks? (Review by yourself, P381/P247) The advantage of bond financing over stock 1.? Stockholder control is not affected. 2. Tax savings result. 3. Earnings per share (EPS) may be higher. Plan A Plan B Issue stock Issue bonds EBIT $1,500,000 $1,500,000 Interest (12%) -- 600,000 EBT $1,500,000 900,000 Tax Expense(30%) 450,000 270,000 Net income $1,050,000 $630,000 Outstanding shares 300,000 100,000 EPS $3.50 $6.30 Disadvantages: Interest must be paid on a periodic basis and the principal must be paid at maturity. Types of bonds (P367/233) ? Secured and Unsecured bonds ?(担保债券和信用债券) Secured bonds collateral Secured by real estate mortgage bond Secured by specific assets set aside to retire the bonds sinking fund bond Unsecured bonds issued against the general credit of the borrower debenture bonds Issued by large corporations with good credit ratings, such as GE ?????? Registered and bearer bonds（记名和不记名债券） Registered issued in the name of the owner Bearer bonds coupon bond